Layer Two adoption measures the increasing use of scaling solutions built on top of primary blockchain networks. This term quantifies the rate at which users, developers, and applications are migrating to or building upon Layer 2 protocols designed to enhance a blockchain’s transaction capacity and reduce costs. It signifies a growing recognition of these scaling solutions as essential for overcoming the limitations of Layer 1 networks, such as slow transaction speeds and high fees. Higher adoption indicates a maturing ecosystem capable of supporting broader use cases.
Context
Layer Two adoption is a critical metric closely watched by analysts and investors, indicating the health and growth trajectory of various blockchain ecosystems. The current discussion centers on the competitive dynamics between different Layer 2 solutions and their ability to attract and retain users. Future developments will likely see intensified efforts to simplify user experiences and improve cross-Layer 2 interoperability to further accelerate this adoption trend.
The integrated self-custody wallet and gas-free DEX aggregator abstracts away core friction, positioning Coinbase as the primary on-ramp for Layer 2 liquidity.
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